"I often hear, that if tokens get cheaper, demand will go up.

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"I often hear, that if tokens get cheaper, demand will go up. That’s Jevons Paradox. Sure, elasticity works. But if prices drop 90%, demand must increase 900% just to stay flat. Remember when internet demand grew while debt-laden Global Crossing spectacularly failed because prices dropped too fast? Historically, semiconductors got 30% cheaper every year. When prices dropped by more than 50%, disaster struck with fabrication plant closings and company failures."

andykessler@andykessler8h ago

How the AI Boom Ends. Look for the “Factor of 10. Current demand is gangbusters, but spending is a game of chicken until multiple factor-of-10 improvements kick in and prices collapse. https://t.co/Y8PCnT73hO ylecun @mustafasuleyman @elonmusk @sama @openai @GoogleDeepMind @AnthropicAI @Meta @ajassy @nvidia @geoffreyhinton @demishassabis @gdb @ESYudkowsky @ericschmidt @AndrewYNg @drfeifei @finkd @ajassy @emollick @miramurati @JohnStossel @steve_hanke @CliffordAsness @AndrewLilico @lymanstoneky @tylercowen @FelixSalmon #EconTwitter @adam_tooze @Austan_Goolsbee @JustinWolfers @elerianm @yardeni @TruthGundlach @thinkymachin

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